https://www.sec.gov/Archives/edgar/data/1593547/000139834418013655/fp0035871_497.htm497 1 fp0035871_497.htm
THE ADVISORS’ INNER CIRCLE FUND III (the “Trust”)
NorthPointe Small Cap Value Fund (the “Fund”)
Supplement dated September 18, 2018 to the
Prospectus dated March 1, 2018 (the “Prospectus”) and
the Statement of Additional Information, dated March 1, 2018 (the “SAI”)
This supplement provides new and additional information beyond that contained in the Prospectus and SAI, and should be read in conjunction with the Prospectus and SAI.
The Board of Trustees of the Trust, at the recommendation of NorthPointe Capital, LLC (the “Adviser”), the investment adviser of the Fund, has approved a plan of liquidation providing for the liquidation of the Fund’s assets and the distribution of the net proceeds pro rata to the Fund’s shareholders. In connection therewith, the Fund is closed to new investments. The Fund is expected to cease operations and liquidate on or about October 26, 2018 (the “Liquidation Date”).
Prior to the Liquidation Date, shareholders may redeem (sell) their shares in the manner described in the “How to Sell Your Fund Shares” section of the Prospectus. For those Fund shareholders that do not redeem (sell) their shares prior to the Liquidation Date, the Fund will distribute to each such shareholder, on or promptly after the Liquidation Date, a liquidating cash distribution equal in value to the shareholder’s interest in the net assets of the Fund as of the Liquidation Date.
In anticipation of the liquidation of the Fund, the Adviser may manage the Fund in a manner intended to facilitate the Fund’s orderly liquidation, such as by holding cash or making investments in other highly liquid assets. As a result, during this time, all or a portion of the Fund may not be invested in a manner consistent with the Fund’s stated investment strategies, which may prevent the Fund from achieving the Fund’s investment objective.
The liquidation distribution amounts will include any accrued income and capital gains, will be treated as a payment in exchange for shares, and generally will be a taxable event for shareholders investing through taxable accounts. You should consult your personal tax advisor concerning your particular tax situation. Shareholders remaining in the Fund on the Liquidation Date will not be charged any transaction fees by the Fund. The net asset value of the Fund on the Liquidation Date, however, will reflect costs of liquidating the Fund.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
NPC-SK-005-0100
Comments
NPSVX:
YTD: 97 Percentile
1yr. 100 "
3yr. 100 "
It's not that this fund has been so consistently bad. It's just that over the past 1.7 years this fund has been so spectacularly awful that its recent performance has pulled down its longer term figures.
It returned 19%, versus 21% for its peers in 2016. Not great, but hardly a disaster. And in its first full calendar year, 2015, it blew away its competitors, outperforming it peers by 3½%.
The Steadman funds had ERs pushing double digits. This one costs only 1.25% (investor class).
While this fund looks like it really did work at being bad (90% turnover, 51 stocks), sometimes you don't have to work much at all to look even worse. Berkowitz achieved that feat over at FAIRX by simply standing pat, with virtually no trading (7% turnover) and just 9 stocks. By doing almost nothing, he managed to achieve a perfect 100th percentile rating, not just YTD, 1 year, 3 year, and 5 year, but also 10 year, and probably further out if one can dig up those figures.